Business Contract Hire

A simple and cost effective way to fund any number of vehicles

Contract Hire, sometimes referred to as an 'Operating Lease' with some Mercedes-Benz Finance agreements, is a long term rental agreement. Contracts range from 12 to 48 months and are tailored to the businesses requirements.

Advantages:

  •     Minimum capital expenditure
  •     Accurate monthly budgeting
  •     Improved cash flow
  •     Fixed interest rates
  •     Rentals can be offset against the businesses profits. Cars with a CO2 output above 130g/km are currently subject to a 15% disallowance on the amount of the rental that can be claimed against the businesses taxation, for contract-hired cars with a CO2 output of 130g/km or below, there is currently no disallowance.
  •     Reduced administration
  •     On-going advice and support
  •     Road Fund Licence provided (vehicle excise duty paid)
  •     Optional maintenance package
  •     Optional breakdown rescue cover
  •     Optional replacement vehicle cover in event of breakdown

   
Disadvantages:

  •     Early termination can be expensive
  •     If you do more miles than stated in your contract you will be charged excess mileage for each mile over that stated in your contract
  •     You must look after the vehicle and return it in a well maintained condition otherwise you will be charged for any damage over and above that stated in the 'Fair Wear and Tear Guide'
  •     You will never own the vehicle as there is no option to buy it


More Information on Business Contract Hire:

The Contract Hire Company reclaims the VAT on the original purchase, which reduces your monthly rentals (which are + VAT). Contract Hire is a very popular choice for VAT registered companies as they can claim back 50% of the VAT on the finance element for cars and generally 100% for commercials (subject to no private use, no exempt turnover and not being on the Flat Rate VAT Scheme).

On contracts with maintenance the VAT on the service element is 100% recoverable. One of the major benefits is that there are no disposal worries as the future value is underwritten by the leasing company. Another benefit of Contract Hire is that it is generally 'off balance sheet funding' (subject to legislation change) which means it can improve your gearing ratio (assets to borrowing ratio) and therefore possibly your borrowing ability in the future.

Pantheon Leasing Limited are a credit broker and not a funder, we are regulated by the Financial Conduct Authority, registered number 665705. We can introduce you to a limited number of finance companies. All offers are subject to change at any time, you must be 18 or over and finance is subject to status, vehicle availability and terms and conditions apply. Failure to maintain payments may result in termination of your agreement and the vehicle being returned, this could affect your credit rating and make it more difficult to obtain credit in the future. All prices listed are based on monthly payments and are correct at time of publication. Note that some contracts may include road tax for the first year only. Breakdown cover is included as per the manufacturer’s warranty, usually for the full term of contract but occasionally for the first year only, please check with the relevant manufacturer as to the length of cover included. Note that although mainland UK delivery is included with the majority of our offers, we do have one or two dealerships that may charge for Scotland deliveries, please check. All Business leasing pricing shown is exclusive of vat, all Personal lease pricing is inclusive of vat. Different terms, mileages and contracts are available upon request. E&OE.

All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.